Reducing prices for reinforcement and workpieces affects the purchases of scrap metal

It seems that winter has frozen the scrap transaction this year. Traditionally, winter was a period of brisk trafficking in scrap, which subsequently led to a rise in price level due to the lack of and inventory of the accumulation of Turkish factories before the winter holidays in Europe, the USA and Russia.

However, this year the decline began prematurely with stagnation of scrap prices in the region of 397 - 400 per ton, which has been going on in Turkey for more than a week. In the same way, in Russia and the countries of Eastern Europe, no significant interest is manifested in scrap metal, its price is 385-390 dollars per ton.

The main reason for this supernatural picture is to immerse the long-term reinforcement market and reduce the price of semi-finished products that have lost about $ 5-7 per ton over the past 10 days. All this happens against the background of low levels of stocks of Turkish factories and unrealized reservation for January. The sluggish orders of the UAE buyers for reinforcement were $ 586-587 per ton.

The reduction in price rupture between the crowbar and the blanks also limits the level of export of reinforcing steel, and the plants prefer to buy blanks from the CIS, not scrap metal.

Despite the weak demand for scrap, some improvement is nevertheless inevitably over the next two weeks, since the delivery of semi-finished products can be difficult due to the operation of the Black Sea ports in the winter, which usually leads to a lack of scrap metal.